SPECIAL DISTRICT LOCAL LAWS CODE CHAPTER 8512. GUADALUPE-BLANCO RIVER AUTHORITY

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE G. RIVER AUTHORITIES

CHAPTER 8512. GUADALUPE-BLANCO RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Text of section effective on April 01, 2027

Sec. 8512.0101. DEFINITIONS. In this chapter:

(1) "Authority" means the Guadalupe-Blanco River Authority.

(2) "Board" means the authority's board of directors.

(3) "Bond" means a bond or note.

(4) "Commission" means the Texas Commission on Environmental Quality.

(5) "Director" means a board member.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0102. CREATION AND NATURE OF AUTHORITY. (a) The authority is a conservation and reclamation district.

(b) The authority's creation is essential to the accomplishment of the purposes of Section 59, Article XVI, Texas Constitution.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0103. REVIEW SCHEDULE UNDER SUNSET ACT. A review of the authority under Section 325.025, Government Code, shall be conducted as if the authority were a state agency scheduled to be abolished September 1, 2031, and every 12th year after that year.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0104. TERRITORY. (a) The authority is composed of the territory described by Subsection (b) as that territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The authority's territory consists of that part of this state included in Caldwell, Calhoun, Comal, DeWitt, Guadalupe, Gonzales, Hays, Kendall, Refugio, and Victoria Counties.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0105. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effectuate the chapter's purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Text of section effective on April 01, 2027

Sec. 8512.0201. NATURE OF BOARD. The board is a state board of a state agency as contemplated by Section 30a, Article XVI, Texas Constitution.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0202. MEMBERSHIP OF BOARD. (a) The board consists of nine directors appointed by the governor with the advice and consent of the senate from a list of nominations provided to the governor by the commission.

(b) Each director must:

(1) be a freehold property tax payer of this state; and

(2) reside in one of the counties included in the authority.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0203. TERMS. Directors serve staggered six-year terms, with three directors' terms expiring February 1 of each odd-numbered year.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0204. REMOVAL. The governor may remove a director for inefficiency, neglect of duty, or misconduct in office, after:

(1) at least 10 days' written notice of the charge against the director; and

(2) an opportunity for the director to be heard in person or by counsel at a public hearing.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0205. VACANCY. The governor shall fill a vacancy on the board for the unexpired term.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0206. VOTING REQUIREMENT. (a) Except as provided by this chapter or the bylaws, the board may take action by the affirmative vote of a majority of the directors present at a meeting.

(b) The following are valid only if authorized or ratified by the affirmative vote of at least five directors:

(1) a contract that involves an amount greater than $100,000 or has a duration of more than one year;

(2) a bond or other evidence of indebtedness; or

(3) an amendment of the bylaws.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0207. OFFICERS, AGENTS, AND EMPLOYEES. (a) The governor shall designate a director as the board's presiding officer, who serves at the will of the governor.

(b) The board shall select a secretary, a general manager, and a treasurer.

(d) Until the board selects a secretary, or if the secretary is absent or unable to act, the board shall select a secretary pro tem.

(e) The general manager is the authority's chief executive officer.

(f) The secretary, secretary pro tem, general manager, and treasurer have the powers and duties, hold office for the term, and are subject to removal in the manner provided by the bylaws.

(g) The board shall set the compensation of the secretary, secretary pro tem, general manager, and treasurer.

(h) The board may appoint other officers, agents, and employees, set their compensation and term of office, prescribe their duties and the method by which they may be removed, and delegate to them any of the board's powers and duties as the board considers proper.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0208. SURETY BONDS. (a) The general manager, the treasurer, and any other authority officer, agent, or employee who is charged with the collection, custody, or payment of authority money shall give bond conditioned on:

(1) the faithful performance of the person's duties; and

(2) an accounting for all authority money and property coming into the person's possession.

(b) The bond must be in a form and amount and with a surety company approved by the board that is authorized to do business in this state.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0209. AUTHORITY'S DOMICILE AND OFFICE. (a) The authority's domicile is in the city of New Braunfels, Comal County.

(b) The authority shall maintain an office in the city of New Braunfels, Comal County.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0210. DIRECTOR TRAINING PROGRAM. (a) A person who is appointed to and qualifies for office as a director may not vote, deliberate, or be counted as a director in attendance at a board meeting until the person completes a training program that complies with this section.

(b) The training program must provide the person with information regarding:

(1) the law governing the authority's operations;

(2) the authority's programs, functions, rules, and budget;

(3) the results of the authority's most recent formal audit;

(4) the requirements of:

(A) laws relating to open meetings, public information, administrative procedure, and the disclosure of conflicts of interest; and

(B) other laws applicable to members of a river authority's governing body in performing their duties; and

(5) any applicable ethics policies adopted by the authority or the Texas Ethics Commission.

(c) A person appointed to the board is entitled to reimbursement for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

(d) The general manager shall create a training manual that includes the information required by Subsection (b). The general manager shall distribute a copy of the training manual annually to each director. Each director shall sign and submit to the general manager a statement acknowledging that the director has received and reviewed the training manual.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0211. SEPARATION OF POLICYMAKING AND MANAGEMENT FUNCTIONS. The board shall develop and implement policies that clearly separate the board's policymaking responsibilities and the general manager's and staff's management responsibilities.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0212. COMPLAINTS. (a) The authority shall maintain a system to promptly and efficiently act on complaints filed with the authority.

(b) The authority shall maintain information about the parties to and subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and the disposition of the complaint.

(c) The authority shall periodically notify the parties to the complaint of the complaint's status until final disposition.

(d) The authority shall make information available describing the authority's procedures for complaint investigation and resolution.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0213. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES. (a) The board shall develop a policy to encourage the use of appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the authority's jurisdiction.

(b) The authority's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) provide training as needed to implement the procedures for alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0214. PUBLIC TESTIMONY. (a) The board shall develop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the authority's jurisdiction.

(b) At each regular board meeting, the board shall include public testimony as a meeting agenda item and allow members of the public to comment on other agenda items and other matters under the authority's jurisdiction. The board may not deliberate on or decide a matter not included in the meeting agenda, except that the board may discuss including the matter on the agenda for a subsequent meeting.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0215. SEAL. The authority may adopt and use a corporate seal.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

SUBCHAPTER C. POWERS AND DUTIES

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Sec. 8512.0301. GENERAL POWERS. The authority has:

(1) the powers of government and the authority to exercise the rights, privileges, and functions specified by this chapter; and

(2) all powers, rights, privileges, and functions conferred by general law on any district, other than a groundwater conservation district, created under Section 59, Article XVI, Texas Constitution, except as expressly limited by this chapter.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0302. POWERS RELATED TO WATER OF RIVERS AND STREAMS. The authority may:

(1) control, store, and preserve, in or adjoining the authority's boundaries, the water of any rivers and streams, including the Guadalupe and Blanco Rivers and their tributaries, for all useful purposes; and

(2) use, distribute, and sell the water described by Subdivision (1), in the authority, for all useful purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0303. POWERS RELATED TO GROUNDWATER. The authority may:

(1) conserve, preserve, and develop groundwater in the authority, subject to any applicable regulation by this state or any political subdivision, for all useful purposes; and

(2) use, distribute, and sell groundwater, in the authority, for all useful purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0304. ACQUISITION OF WATER, WATER SUPPLY FACILITIES, AND CONSERVATION STORAGE CAPACITY. The authority may acquire water, water supply facilities, and conservation storage capacity inside or outside the authority from any person.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0305. USE, DISTRIBUTION, AND SALE OF WATER OUTSIDE AUTHORITY. (a) The authority may use, distribute, and sell, outside the authority, any water the authority controls, stores, preserves, conserves, develops, or acquires if the board determines that adequate provision can be made to continue to serve the water requirements inside the authority.

(b) Notwithstanding Subsection (a), the authority may not enter into any agreement that contemplates or results in the removal from the watershed of the Guadalupe and Blanco Rivers and their tributaries of any surface water of the authority necessary to supply the reasonably foreseeable future water requirements for municipal uses inside the watershed during the next 50 years, except on a temporary, interim basis.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0306. DEVELOPMENT, GENERATION, DISTRIBUTION, AND SALE OF WATER POWER AND ELECTRIC ENERGY. The authority may:

(1) develop and generate water power and electric energy inside the authority; and

(2) distribute and sell water power and electric energy inside or outside the authority.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0307. PREVENTION OF DAMAGE TO PERSONS OR PROPERTY. The authority may prevent or aid in the prevention of damage to persons or property from the water of the Guadalupe and Blanco Rivers and their tributaries.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0308. FORESTATION AND REFORESTATION; PREVENTION OF SOIL EROSION AND FLOODS. In the watershed of the Guadalupe and Blanco Rivers and their tributaries, the authority may:

(1) forest, reforest, or aid in foresting or reforesting; and

(2) prevent or aid in the prevention of soil erosion and floods.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0309. DEVELOPMENT OF NAVIGATION AND RELATED FACILITIES. The authority may develop the navigation of inland water in the authority and any facility in aid of that navigation.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0310. DEVELOPMENT OF RECLAMATION AND DRAINAGE OF CERTAIN LAND AND RELATED FACILITIES. The authority may develop the reclamation and drainage of overflowed land and other land needing drainage, other than coastal wetlands or inland marshes, in the authority and any facility in aid of that reclamation and drainage.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0311. WASTE MANAGEMENT. (a) The authority may develop the collection, transportation, treatment, disposal, and handling of any waste, as that term is defined by general law, and any facility in aid of those activities.

(b) The authority may construct or acquire sanitary sewer facilities for the collection, treatment, and disposal of sewage in a municipality's boundaries only with the municipality's consent.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0312. CONSERVATION AND DEVELOPMENT FOR RECREATION. The authority may conserve and develop water and land for recreational purposes and any facility in aid of those purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0313. ACQUISITION OR OPERATION OF PROPERTY. (a) The authority may acquire, maintain, use, and operate property of any kind or any property interest, inside or outside the authority, necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the authority by this chapter.

(b) The authority may acquire property or a property interest as provided by Subsection (a) by purchase, lease, gift, or any other manner, other than by the exercise of the power of eminent domain.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0314. EMINENT DOMAIN. (a) The authority may acquire by the exercise of the power of eminent domain property of any kind or a property interest inside or outside the authority that is necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the authority by this chapter.

(b) The authority must exercise the power of eminent domain in the manner provided by:

(1) Chapter 21, Property Code; or

(2) the statutes relating to the exercise of the power of eminent domain by districts organized under general law under Section 59, Article XVI, Texas Constitution.

(1) located outside the authority; and

(2) owned by a body politic.

(d) The authority's authority under this section to exercise the power of eminent domain expired on September 1, 2013, unless the authority submitted a letter to the comptroller in accordance with Section 2206.101(b), Government Code, not later than December 31, 2012.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0315. SALE, LEASE, OR OTHER DISPOSITION OF PROPERTY. Subject to the provisions of this chapter, the authority may sell, lease, or otherwise dispose of property of any kind or any property interest:

(1) that is not necessary authority business; or

(2) the sale, lease, or disposition of which, in the board's judgment, is necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the authority by this chapter or general law.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0316. OVERFLOW OR INUNDATION OF PUBLIC PROPERTY; RELOCATION OF FACILITIES. (a) In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, or changing the grade of or altering the construction of a facility to provide comparable replacement without enhancement of the facility, after deducting the net salvage value derived from the old facility.

(b) The authority may overflow and inundate any public property and require the relocation of a road, pipeline, transmission line, railroad, cemetery, or highway in the manner and to the extent permitted to a district organized under general law under Section 59, Article XVI, Texas Constitution.

(c) If in the exercise of the power of eminent domain or any other power the authority requires relocating, raising, lowering, rerouting, or changing the grade of or altering the construction of any railroad, transmission line, conduit, pole, property, facility, or pipeline, the action shall be the authority's sole expense.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0317. CONSTRUCTION, MAINTENANCE, AND OPERATION OF FACILITIES. The authority may construct, extend, improve, maintain, reconstruct, and use and operate facilities of any kind necessary or convenient to the exercise of the authority's powers, rights, privileges, and functions.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0318. GENERAL CONTRACT POWERS. (a) The authority may enter into a contract or execute an instrument necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the authority by this chapter or general law, including a contract with any person as the board considers necessary or proper for, or in connection with, any corporate purpose to provide for the construction, acquisition, ownership, financing, operation, maintenance, sale, leasing to or from, or other use or disposition of any facility authorized to be developed, preserved, conserved, acquired, or constructed under this chapter or general law.

(b) The power to enter into a contract regarding a facility under Subsection (a) includes the power to enter into a contract regarding:

(1) any improvements, structures, facilities, equipment, and other property of any kind in connection with the contract's subject;

(2) any land, leaseholds, and easements; and

(3) any interests in property described by this subsection.

(c) A contract entered into or instrument executed under this section may be for the term and contain the provisions the board determines to be in the authority's best interests.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0319. JOINT PROJECTS RELATED TO PROPERTY. The authority may:

(1) authorize any person to participate with the authority in the joint construction, acquisition, ownership, financing, operation, and maintenance of improvements, structures, facilities, equipment, and any other property in connection with the subject of the authorization, and all land, leaseholds, easements, and interests in the property that the board determines to be necessary or proper for, or in connection with, any corporate purpose; and

(2) allow a joint participant to receive the portion of the revenue derived from the property that the board considers just, equitable, and proper.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0320. STATE SUPERVISION AND APPROVAL. The commission shall consider the adequacy of, and approve or refuse to approve, any flood control or conservation improvement plan that:

(1) the authority devises to achieve a plan or purpose for which the authority was created; and

(2) contemplates an improvement that the commission would supervise under general law.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0321. ADDITIONAL POWERS RELATING TO CONTRACTS, RULES, AND REGULATIONS. The authority may enter into and carry out contracts or establish or comply with rules and regulations concerning labor and materials and other related matters in connection with any project the authority considers desirable or as requested by this state, the United States, or any corporation or agency created, designated, or established by this state or the United States, that may assist in financing the project.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0322. PUBLIC USE OF AUTHORITY'S SURPLUS LAND. The authority may not prevent free public use of the authority's surplus land for recreational purposes, hunting, or fishing except to the extent to which, in the board's opinion, the use would interfere with the proper conduct of the business.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0323. EFFECT OF CHAPTER ON WATER RIGHTS AND GROUNDWATER REGULATION. (a) This chapter does not confer any water rights on the authority or set any priority of rights. The authority must obtain its water rights by application to and permit from the commission as provided by general statute.

(b) This chapter does not authorize the authority to regulate the withdrawal of groundwater.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0324. APPLICABILITY OF CERTAIN STATUTES. The rights, powers, privileges, and functions granted to the authority under this chapter, and the authority itself, are expressly subject to Chapters 5, 7, 11, 12, 17, 26, and 30, Water Code, and Chapter 366, Health and Safety Code.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

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Sec. 8512.0401. DISBURSEMENT OF MONEY. The authority may disburse the authority's money only by a check, draft, order, or other instrument signed by a person authorized to sign the instrument by the bylaws or a resolution in which at least five directors concur.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

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Sec. 8512.0402. ACCOUNTS, CONTRACTS, AND OTHER RECORDS; PUBLIC INSPECTION. (a) The authority shall keep complete and accurate accounts conforming to approved methods of bookkeeping.

(b) The accounts and all contracts, documents, and records of the authority shall be kept at an official authority office.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0403. FILING OF AUDIT REPORT. Copies of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be certified to by the accountant who performed the audit and filed:

(1) as required by Section 49.194, Water Code; and

(2) with the comptroller.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0404. ASSET MANAGEMENT PLAN. (a) In this section, "system" means a system for the:

(1) provision of water to the public for human consumption; or

(2) collection and treatment of wastewater.

(b) The authority shall adopt an asset management plan by:

(1) preparing an asset inventory that identifies the assets of each system and the asset's condition;

(2) developing criteria to prioritize assets for repair or replacement, including:

(A) the date by which the asset will need to be repaired or replaced;

(B) the importance of the asset in providing safe drinking water and complying with regulatory standards;

(D) other criteria the authority determines;

(3) estimating asset repair and replacement costs;

(4) identifying and evaluating potential financing options; and

(5) prioritizing systems that are not in compliance with federal or state regulatory standards, including water quality standards.

(c) The authority shall review and revise the asset management plan annually to account for regulatory changes and other developments.

(d) The board shall approve the asset management plan annually as part of its budgeting process.

(e) The asset management plan's findings must be posted on the authority's publicly accessible Internet website.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0405. RATES AND OTHER CHARGES. (a) The board shall impose rates and other charges for the sale or use of water, water connections, power, electric energy, or other services the authority sells, provides, or supplies.

(b) The rates and other charges must be reasonable, nondiscriminatory, and sufficient to provide revenue adequate to:

(1) pay all expenses necessary to the operation, maintenance, and replacement of and the making of additions to the authority's properties and facilities;

(2) pay the principal of, the interest on, and any premium on all bonds issued under this chapter when they become due and payable;

(3) pay all sinking fund or reserve fund payments agreed to be made with respect to any of those bonds and payable out of that revenue when and as they become due and payable;

(4) fulfill the terms of any agreements made with the holders of those bonds or with any person in their behalf; and

(5) discharge all other lawful obligations of the authority when they become due.

(c) The rates and other charges may not exceed the amount that may be necessary to fulfill the obligations imposed on the authority by this chapter.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0406. USE OF EXCESS REVENUE. If the authority receives revenue in excess of that required for the purposes specified by Sections 8512.0405(b)(1), (2), (3), and (5), the board may:

(1) use the excess revenue to:

(A) establish a reasonable depreciation and emergency fund; or

(B) retire bonds issued under this chapter by purchase and cancellation or redemption; or

(2) apply the excess revenue to any corporate purpose.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0407. PAYMENTS UNDER AGREEMENTS FOR USE OR SALE OF PROPERTY. (a) If the authority enters into an agreement to lease, sell, or otherwise dispose of any property or facilities to any person, the person is subject to the regulations and control of rates or other charges by this state as may be provided by agreement or general law.

(b) Notwithstanding Subsection (a), the board shall set payments under a lease or other contract or agreement for the use or sale of any property so that the payments, together with any other pledged revenue, will be sufficient to:

(1) pay the principal of, the interest on, and any premium on all bonds to which the payments are pledged when they become due and payable;

(2) pay all sinking fund or reserve fund payments agreed to be made with respect to any bonds described by Subdivision (1), and payable out of those payments, when they become due and payable;

(3) fulfill the terms of any agreement made with the holders of bonds described by Subdivision (1) or any person in their behalf; and

(4) discharge all other obligations of the authority in connection with bonds described by Subdivision (1) when they become due.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0408. TAX, ASSESSMENT, OR PLEDGE OF CREDIT OF STATE NOT AUTHORIZED BY CHAPTER. This chapter does not authorize the authority to:

(1) impose a tax or assessment;

(2) create any debt payable out of taxes or assessments; or

(3) pledge this state's credit.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

SUBCHAPTER E. BORROWED MONEY AND GRANTS

Text of section effective on April 01, 2027

Sec. 8512.0501. LOANS AND GRANTS. The authority may:

(1) borrow money for the authority's corporate purposes;

(2) borrow money or accept a grant from any person, including this state, the United States, or a corporation or agency created or designated by this state or the United States;

(3) in connection with a loan or grant described by Subdivision (2), enter into any agreement this state, the United States, or the corporation or agency requires;

(4) make and issue the authority's bonds for money borrowed, in the manner and to the extent provided by this chapter; and

(5) refund or refinance any outstanding bonds and make and issue the authority's bonds for those purposes in the manner and to the extent provided by this chapter.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0502. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. This chapter does not deprive this state of its power to regulate and control rates or other charges to be imposed for the use of water, water connections, power, electric energy, or another service. This state pledges to and agrees with the purchasers and successive holders of the bonds issued under this chapter that this state will not limit or alter the power this chapter gives the authority to impose rates and other charges that will produce revenue sufficient to pay the items specified by Section 8512.0405(b) or in any way impair the rights or remedies of the bondholders, or of any person in their behalf, until the following are fully discharged:

(1) the bonds;

(2) the interest on the bonds;

(3) any premium;

(4) interest on unpaid installments of interest;

(5) all costs and expenses in connection with any action or proceeding by or on behalf of the bondholders; and

(6) all other authority obligations in connection with the bonds.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0503. OBLIGATION PAYABLE FROM REVENUE. An authority debt, liability, or obligation for the payment of money, however entered into or incurred and whether arising from an express or implied contract or otherwise, is payable:

(1) out of the revenue the authority receives with respect to the authority's properties, subject to any prior lien on the revenue conferred by any resolution previously adopted as provided by this chapter authorizing the issuance of bonds; or

(2) if the board so determines, out of the proceeds of sale by the authority of bonds payable solely from revenue described by Subdivision (1).

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0504. POWER TO ISSUE BONDS. (a) The authority may issue bonds for any corporate purpose.

(b) The bonds must be authorized by a board resolution.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0505. TERMS OF ISSUANCE. Authority bonds may be:

(1) sold for cash;

(2) issued on terms the board determines in exchange for property of any kind, or any property interest, that the board considers necessary or convenient for the corporate purpose for which the bonds are issued; or

(3) issued in exchange for like principal amounts of other matured or unmatured authority obligations.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0506. DEPOSIT OF PROCEEDS. The proceeds of sale of authority bonds shall be deposited in one or more banks or trust companies, and shall be paid out according to the terms, on which the authority and the purchasers of the bonds agree.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0507. RESOLUTION PROVISIONS. (a) A resolution authorizing bonds may contain provisions:

(1) reserving the right to redeem the bonds or requiring the redemption of the bonds, at the time, in the amount, and at the price, not exceeding 105 percent of the principal amount of the bonds, plus accrued interest, as may be provided;

(2) providing for the setting aside of sinking funds or reserve funds and the regulation and disposition of those funds;

(3) pledging, to secure the payment of the principal of and interest on the bonds and of the sinking fund or reserve fund payments agreed to be made with respect to the bonds:

(A) all or any part of the gross or net revenue subsequently received by the authority with respect to the property to be acquired or constructed with the bonds or the proceeds of the bonds; or

(B) all or any part of the gross or net revenue subsequently received by the authority from any source;

(4) prescribing the purposes to which the bonds or any bonds subsequently to be issued, or the proceeds of the bonds, may be applied;

(5) agreeing to impose rates and other charges sufficient to produce revenue adequate to pay the items specified by Section 8512.0405(b) and prescribing the use and disposition of all revenue;

(6) prescribing limitations on the issuance of additional bonds and subordinate lien bonds and on the agreements that may be made with the purchasers and successive holders of those bonds;

(7) with regard to the construction, extension, improvement, reconstruction, operation, maintenance, and repair of the authority's properties and the carrying of insurance on all or any part of those properties covering loss or damage or loss of use and occupancy resulting from specified risks;

(8) setting the procedure, if any, by which the authority may change the terms of a contract with the bondholders, the amount of bonds the holders of which must consent to that change, and the manner in which the consent may be given;

(9) providing for the execution and delivery by the authority to a bank or trust company authorized by law to accept trusts, or to the United States or any officer of the United States, of indentures and agreements for the benefit of the bondholders setting forth any or all of the agreements authorized by this chapter to be made with or for the benefit of the bondholders and any other provisions that are customary in such indentures or agreements; and

(10) approved by the board that are not inconsistent with this chapter.

(b) A provision authorized by this section that is contained in a bond resolution is part of the contract between the authority and the bondholders.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0508. DEFAULT PROCEDURES. (a) This section applies only to a default in:

(1) the payment of the principal of bonds as they become due and payable, whether at maturity, by call for redemption, or otherwise;

(2) the payment of the interest on bonds as the interest becomes due and payable; or

(3) the performance of an agreement made with the purchasers or successive holders of bonds.

(b) A resolution authorizing bonds and any indenture or agreement entered into under the resolution may provide that in the event of a default described by Subsection (a) that continues for a period, if any, prescribed by the resolution, the trustee under the indenture entered into with respect to the bonds authorized by the resolution, or, if there is no indenture, a trustee appointed in the manner provided by the resolution by the holders of 25 percent in aggregate principal amount of the bonds authorized by the resolution and then outstanding, and on the written request of the holders of 25 percent in aggregate principal amount of the bonds authorized by the resolution then outstanding, shall, in the trustee's own name, but for the equal and proportionate benefit of the holders of all of the bonds, and with or without having possession of the bonds:

(1) enforce by mandamus or other action or proceeding at law or in equity all rights of the bondholders;

(2) bring an action on the bonds or the related coupons;

(3) require by action in equity the authority to account as if it were the trustee of an express trust for the bondholders;

(4) enjoin by action in equity any acts or things that may be unlawful or in violation of the rights of the bondholders; or

(5) after such notice to the authority as the resolution may provide, declare the principal of all of the bonds due and payable, and if all defaults have been satisfied, then with the written consent of the holders of 25 percent in aggregate principal amount of the bonds then outstanding, annul the declaration and its consequences.

(c) Notwithstanding Subsection (b), the holders of more than a majority in principal amount of the bonds authorized by the resolution and then outstanding, by written instrument delivered to the trustee, are entitled to direct and control any and all action taken or to be taken by the trustee under this section.

(d) A resolution, indenture, or agreement relating to bonds may provide that in an action or proceeding under this section, the trustee, whether or not all of the bonds have been declared due and payable and with or without possession of any of the bonds, is entitled to the appointment of a receiver who may:

(1) enter and take possession of all or any part of the properties of the authority;

(2) operate and maintain the properties;

(3) impose rates and other charges sufficient to provide revenue adequate to pay the items specified by Section 8512.0405(b) and the costs and disbursements of the action or proceeding; and

(4) apply the revenue in accordance with this chapter and the resolution authorizing the bonds.

(e) In an action or proceeding by a trustee under this section, the reasonable fees, attorney's fees, and expenses of the trustee and of the receiver, if any, constitute taxable disbursements, and all costs and disbursements allowed by the court are a first charge on any revenue pledged to secure the payment of the bonds.

(f) The courts of Comal County have jurisdiction of an action or proceeding by a trustee on behalf of the bondholders and of all property involved in the action or proceeding.

(g) In addition to the powers specifically provided by this section, a trustee has all powers necessary or appropriate for the exercise of the powers specifically provided or incident to the general representation of the bondholders in the enforcement of their rights.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0509. INTERIM BONDS. (a) Before issuing definitive bonds, the authority may make and issue interim bonds.

(b) The interim bonds issued shall be taken up with the proceeds of the definitive bonds, or the definitive bonds may be issued and delivered in exchange for the interim bonds.

(c) After an exchange of definitive bonds for interim bonds, the authority shall file certificates with the comptroller as to the exchange and cancellation, and the comptroller shall register the certificates in the same manner as the proceedings authorizing the issuance of the bonds are registered.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0510. TEMPORARY BONDS. The authority may make and issue temporary bonds for the purpose of interim financing and make agreements or other provision to refinance the temporary bonds with bonds to provide permanent financing at the time, in the manner, and on the conditions the board determines.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0511. REFUNDING BONDS. (a) The authority may make and issue refunding bonds for the purpose of refunding or refinancing outstanding bonds authorized and issued by the authority under this chapter or other law and the interest and premium, if any, on the bonds to maturity or on any earlier redemption date specified in the resolution authorizing the issuance of the refunding bonds.

(b) Refunding bonds may:

(1) be issued to refund more than one series of outstanding bonds;

(2) combine the pledges of the outstanding bonds for the security of the refunding bonds; or

(3) be secured by other or additional revenue.

(c) The provisions of this chapter regarding the issuance of bonds, the terms and provisions of bonds, and the remedies of the bondholders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the authority, in the resolution authorizing the issuance of refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds at the places at which the bonds to be refunded are payable. In that case, the refunding bonds may be issued in an amount sufficient to pay the interest and premium, if any, on the bonds to be refunded to their maturity date or specified earlier redemption date, and the comptroller shall register the refunding bonds without the concurrent surrender and cancellation of the bonds to be refunded.

(f) The authority may also refund outstanding bonds in the manner provided by any applicable general law.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0512. POWER OF AUTHORITY TO PURCHASE BONDS ISSUED BY AUTHORITY. (a) Using any money available for the purpose, the authority may purchase bonds issued by the authority at a price not exceeding the redemption price applicable at the time of the purchase, or, if the bonds are not redeemable, at a price not exceeding the principal amount of the bonds plus accrued interest.

(b) All bonds purchased under this section shall be cancelled, and bonds may not be issued in lieu of those bonds.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 8512.0513. BONDS EXEMPT FROM TAXATION. A bond issued under this chapter and the interest on the bond are exempt from taxation, except inheritance taxes, by this state or by any political subdivision of this state.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.